HMPRO Reports a Decline of 10% in 1Q Profit as COVID-19 Outbreak Halts the Economy

Home Product Center Public Company Limited (HMPRO) has reported its 1Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

HMPRO had total revenue and profit in the first quarter of 2020 of 15,333.29 million baht and 1,266.52 million baht, respectively, a decrease of 7.37% and 10.80% from the same period of last year. The sales were impacted by several economic factors as well as the enforcement of the business shutdown order. As a result, the sales growth in this quarter did not meet the target.

Revenue from contracts with customers which comprised of sales revenue and service income(Home Service) was 14,545.59 million baht, a decrease of 951.31 million baht or down by 6.14%, from a decline in same store sales growth of HomePro, Mega Home, and HomePro in Malaysia which were affected by store closures in Thailand since 22 March 2020 and in Malaysia since 18 March 2020 due to the Coronavirus 2019 (COVID-19) pandemic. However, there was still an increase in service income under “Home Service”.

Rental and service income amounted to 382.00million baht, a decrease of 178.82 million baht or down by 31.89%, resulted from the closure of stores and Market Village, during which the Company considered lowering the rent for tenants, and the cancellation of HomePro Expo event in the first quarter.

Other income was 405.71 million baht, a decrease of 89.60 million baht or down by 18.09% in relation to the declining sales income along with the absence of promotional activities with vendors both in stores and for HomePro Expo events.

 

Following the government’s order of a temporary business shutdown to limit the spread of COVID-19, applying from 22nd March 2020 until present, HMPRO have closed down 66 stores of HomePro and 7 stores of Mega Home in Thailand. The HomePro Expo which was scheduled in March has also been postponed.

Furthermore, all 6 stores of HomePro in Malaysia have been closed down since 18th March 2020, in accordance with an order from the Government of Malaysia. The restriction period will end on 28th April 2020, if no extension is announced.

In the first quarter, HMPRO did not open any new stores. As of the first quarter of 2020, the company has 84 HomePro stores, 9 HomePro S stores, 14 Mega Home stores and 6 HomePro stores in Malaysia.